I wasn't aware of the "classic" switch, looks like they added it early last year. They appear to call this "classic confinement mode", and it sounds like it functions essentially like a normal package manager, though they insist on saying it's a "relaxed security model" instead of "no additional security model at all", which appears to be the truth of the matter.
Their site claims that only pre-vetted Snaps can be distributed with "classic confinement", so that's something at least. If that's true, it would allow the comparison between Snaps and the AUR to hold -- Snaps would either be pre-vetted and akin to official package repositories, or unvetted but executed within containers (which is still not really an ironclad security guarantee, but better than nothing).
It is deeply sad to see something that supposedly exists to facilitate and promote a sandboxed distribution model give up and cop out so blatantly though. They should've just named the flag "--make-snaps-worthless-you-should-be-using-apt-instead".
Is there a technical reason to prefer "classic" snaps over packages from the official repos? It seems like the default install path may be different and the libraries/installed files possibly better segmented on the filesystem, but ultimately that's little consolation.